ClearBridge Investments, an investment management company, released its “ClearBridge SMid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Smid cap growth stock rose in the fourth quarter driven by a post-election surge and the market’s shift back to growth leadership in December. The ClearBridge SMID Growth Strategy beat its Russell 2500 Growth Index benchmark in the fourth quarter due to robust stock selection in health care and materials sectors, which outperformed detractors in consumer discretionary holdings. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, ClearBridge SMid Cap Strategy emphasized stocks such as Doximity, Inc. (NYSE:DOCS). Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud-based digital platform for medical professionals. The one-month return of Doximity, Inc. (NYSE:DOCS) was -13.27%, and its shares gained 127.10% of their value over the last 52 weeks. On March 20, 2025, Doximity, Inc. (NYSE:DOCS) stock closed at $62.77 per share with a market capitalization of $11.78 million.
ClearBridge SMid Cap Strategy stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q4 2024 investor letter:
“Doximity, Inc. (NYSE:DOCS), which offers a cloud-based collaboration platform for medical professionals that supports patient care and telehealth, was our top-performing holding in the sector. Shares rallied on a beat and raise quarter, with the company citing strong advertising revenue growth with impressive EBITDA flow through. Doximity has a history of consistent execution and, while it stumbled last year in effectively communicating realistic guidance and outlooks, it appears that management has regained investors’ trust through several quarters of solid execution.”
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Doximity, Inc. (NYSE:DOCS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the fourth quarter compared to 19 in the third quarter. Doximity, Inc. (NYSE:DOCS) reported 25% year-on-year revenue increase in third quarter fiscal 2025, surpassing the high end of the guidance range by 10%. While we acknowledge the potential of Doximity, Inc. (NYSE:DOCS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Doximity, Inc. (NYSE:DOCS) and shared Meridian Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
